Tags: banking, big business, humanity, politics, poor, poverty, rich
Love this line. It jives with something I’ve noticed about economic theory. The official line on a healthy free market in macroeconomics is that as prices move towards equilibrium through the machinations of the invisible hand, profits inevitably shrink until they are only just sustainable to keep businesses afloat. It’s the only way prices can be fair rather than extortionist. Yet the theory of human motivation to produce goods for sale is self-serving, meaning that all the actors on the market are expected to try anything to maximize their profits. Why isn’t it obvious that if that motivation is put on a pedestal as the engine of human progress, it will find a way to subvert free markets and maintain extortionist price schemes, and beyond that, to scam people into paying for worthless products, and just generally make accumulation of other people’s money such a high priority that the conditions needed to make exchange markets viable are subverted across the board? If you’re interested, I’ve come across a book called “systems of survival” that has a very different theory of what makes an exchange market work, identifying ethical principles of social behavior that have to be respected by the players and enforced by regulators in order for an economy of voluntary transactions for goods and services to be viable. I don’t agree with every idea in the book, but I highly recommend it as food for thought.
I will definitely look into that book! Thank you!
Reblogged this on NonviolentConflict.
Reblogged this on OBR.fm Green Room.
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